2001—Subsec. (a)(3). Pub. L. 107–16, § 562(a), added par. (3).

Subsec. (b)(1). Pub. L. 107–16, § 563(a), reenacted heading without change and amended text of par. (1) generally. Prior to amendment, text read as follows: “If the allocation of the GST exemption to any property is made on a gift tax return filed on or before the date prescribed by section 6075(b) or is deemed to be made under section 2632(b)(1)—

“(A) the value of such property for purposes of subsection (a) shall be its value for purposes of chapter 12, and

“(B) such allocation shall be effective on and after the date of such transfer.”

Subsec. (b)(2)(A). Pub. L. 107–16, § 563(b), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “If property is transferred as a result of the death of the transferor, the value of such property for purposes of subsection (a) shall be its value for purposes of chapter 11; except that, if the requirements prescribed by the Secretary respecting allocation of post-death changes in value are not met, the value of such property shall be determined as of the time of the distribution concerned.”

Subsec. (g). Pub. L. 107–16, § 564(a), added subsec. (g).

1990—Subsec. (b)(3). Pub. L. 101–508, § 11704(a)(36), amended Pub. L. 100–647, § 1014(g)(4)(F)(ii). See 1988 Amendment note below.

Subsec. (c)(2). Pub. L. 101–508, § 11703(c)(2), inserted at end: “Rules similar to the rules of section 2652(c)(3) shall apply for purposes of subparagraph (A).”

Subsec. (c)(2)(B). Pub. L. 101–508, § 11703(c)(1), substituted “the trust does not terminate before the individual dies” for “such individual dies before the trust is terminated”.

Subsec. (d)(2)(B)(i)(I). Pub. L. 101–508, § 11704(a)(17), substituted “State” for “state”.

1989—Subsec. (b)(1), (3). Pub. L. 101–239 substituted “a gift tax return filed on or before the date prescribed by section 6075(b)” for “a timely filed gift tax return required by section 6019” in introductory provisions.

1988—Subsec. (a)(2). Pub. L. 100–647, § 1014(g)(4)(B), struck out at end “Except as provided in paragraphs (3) and (4) of subsection (b), the value determined under subparagraph (B)(i) shall be of the property as of the time of the transfer to the trust (or the direct skip).”

Subsec. (b). Pub. L. 100–647, § 1014(g)(4)(D), inserted “Except as provided in subsection (f)—” as introductory provision.

Subsec. (b)(2)(A). Pub. L. 100–647, § 1014(g)(4)(C), inserted before period at end “; except that, if the requirements prescribed by the Secretary respecting allocation of post-death changes in value are not met, the value of such property shall be determined as of the time of the distribution concerned.”

Subsec. (b)(2)(B). Pub. L. 100–647, § 1014(g)(4)(E), substituted “to property transferred at death” for “at or after death” in heading and “to property transferred as a result of the death of the transferor” for “at or after the death of the transferor” in text.

Subsec. (b)(3). Pub. L. 100–647, § 1014(g)(4)(F)(ii), as amended by Pub. L. 101–508, § 11704(a)(36), substituted “Allocations to inter vivos transfers” for “Inter vivos allocations” in heading.

Pub. L. 100–647, § 1014(g)(4)(F)(i), substituted “to any property not transferred as a result of the death of the transferor is” for “to any property is made during the life of the transferor but is”.

Subsec. (c). Pub. L. 100–647, § 1014(g)(17)(A), inserted “direct skips which are” in heading and amended text generally. Prior to amendment, text read as follows:

“(1) Direct skips.—In the case of any direct skip which is a nontaxable gift, the inclusion ratio shall be zero.

“(2) Treatment of nontaxable gifts made to trusts.—

“(A) In general.—Except as provided in subparagraph (B), any nontaxable gift which is not a direct skip and which is made to a trust shall not be taken into account under subsection (a)(2)(B).

“(B) Determination of 1st transfer to trust.—In the case of any nontaxable gift referred to in subparagraph (A) which is the 1st transfer to the trust, the inclusion ratio for such trust shall be zero.

“(3) Nontaxable gift.—For purposes of this section, the term ‘nontaxable gift’ means any transfer of property to the extent such transfer is not treated as a taxable gift by reason of—

“(A) section 2503(b) (taking into account the application of section 2513), or

“(B) section 2503(e).”

Subsec. (d)(1). Pub. L. 100–647, § 1014(g)(17)(B), struck out “(other than a nontaxable gift)” after “transfer of property”.

Subsec. (d)(2)(B)(i). Pub. L. 100–647, § 1014(g)(18), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “the value of the property involved in such transfer, reduced by any charitable deduction allowed under section 2055 or 2522 with respect to such property, and”.

Subsec. (e). Pub. L. 100–647, § 1014(g)(3)(A), added subsec. (e).

Subsec. (f). Pub. L. 100–647, § 1014(g)(4)(A), added subsec. (f).

Pub. L. 107–16, title V, § 562(b), June 7, 2001, 115 Stat. 90, provided that: “The amendment made by this section [amending this section] shall apply to severances after December 31, 2000.”

Pub. L. 107–16, title V, § 563(c), June 7, 2001, 115 Stat. 91, provided that: “The amendments made by this section [amending this section] shall apply to transfers subject to chapter 11 or 12 of the Internal Revenue Code of 1986 made after December 31, 2000.”

Pub. L. 107–16, title V, § 564(b), June 7, 2001, 115 Stat. 91, provided that:

Pub. L. 101–508, title XI, § 11703(c)(4), Nov. 5, 1990, 104 Stat. 1388–517, provided that: “The amendments made by paragraphs (1) and (2) [amending this section] shall apply to transfers after March 31, 1988.”

Amendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100–647, to which such amendment relates, see section 7817 of Pub. L. 101–239, set out as a note under section 1 of this title.

Pub. L. 100–647, title I, § 1014(g)(3)(B), Nov. 10, 1988, 102 Stat. 3563, provided that: “The amendment made by subparagraph (A) [amending this section] shall apply for purposes of determining the inclusion ratio with respect to property transferred after October 13, 1987.”

Pub. L. 100–647, title I, § 1014(g)(17)(C), Nov. 10, 1988, 102 Stat. 3567, provided that: “The amendments made by this paragraph [amending this section] shall apply to transfers after March 31, 1988.”

Amendment by section 1014(g)(4), (18) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

Section applicable to generation-skipping transfers (within the meaning of section 2611 of this title) made after Oct. 22, 1986, except as otherwise provided, see section 1433 of Pub. L. 99–514, set out as a note under section 2601 of this title.